urgent advice needed.
#21
That deal to my mind is pretty poor. The selling price on the car seems ok, but the trade in is something where you may have room for negotiation and the finance rate you're being offered is simply terrible. If they want the deal more than you do, and these cars are NOT flying off the lot, I'd push them hard on both. Ultimately you have to do what makes you happy, and for that reason alone the deal may be worth it to you but for me it's a poor one.
as for the trade in value...how should I negotiate on that? what do you think it should be?
#22
I would never in a million years pay $1700 / mo. for a car. You're going to be paying $134k for a car worth new $102k. (Putting on flame suit first...) If you have to finance the entire thing you shouldn't be buying it. But if you decide to go through with it, check with your insurance agent to see how much that will be. With negative equity you'll need gap insurance as well. That will add to your payment.
#23
I would never in a million years pay $1700 / mo. for a car. You're going to be paying $134k for a car worth new $102k. (Putting on flame suit first...) If you have to finance the entire thing you shouldn't be buying it. But if you decide to go through with it, check with your insurance agent to see how much that will be. With negative equity you'll need gap insurance as well. That will add to your payment.
Could I have written a check? Sure. But..why bother?
#24
I think there are definitely circumstances where it makes sense to finance the whole car. I financed the whole thing because I received a very low interest rate and I can do better than that rate with my money in the mean time. Also, I like maintaining liquidity.
Could I have written a check? Sure. But..why bother?
Could I have written a check? Sure. But..why bother?
#26
#28
As for trade in, there's no harm in trying a little hardball. It matters not what the value of your car is - what matters is what the dealer is wiling to pay to make the deal happen. You absolutely have to be willing to walk away if you want to minimize your cost to change. If the dealer senses you're going to do the deal regardless, they are absolutely not going to make any concessions. Not that I recommend this approach for everyone, but I have a long standing belief that unless you and your sales guy almost come to blows you probably left money on the table.
In most cases, I tend to think that you soon forget what you pay so it's maybe not worth it to worry too much about the final few hundred bucks. In your case, though, every dollar counts - so do try to push harder.
Good luck!
Last edited by swajames; 01-27-2016 at 08:43 PM.
#29
#30
The negotiated price with rebate on the '16 is decent and the trade in is "ok" all things considered (trades always suck), but the killer is the $41,000 in negative equity and finance charges. It's just not worth it.
I traded my '15 Base Coupe for a '16 R Coupe so I know where you are coming from. I lost some money as expected, but it wasn't even half of that amount.
In the end and guessing what your current car cost originally, you are looking at a total loss / additional cost of about 45%. If you went used as some have suggested you could cut that by at least a third, maybe half if you got a good finance rate.
I traded my '15 Base Coupe for a '16 R Coupe so I know where you are coming from. I lost some money as expected, but it wasn't even half of that amount.
In the end and guessing what your current car cost originally, you are looking at a total loss / additional cost of about 45%. If you went used as some have suggested you could cut that by at least a third, maybe half if you got a good finance rate.
#31
I've got to agree with that. Even though the rates are higher than a few months ago, the cost of money is still pretty low. If your credit rating merits that APR, so be it, but shop around. Consider joining a credit union. Financing through the dealer saves effort, but you'll rarely get the best deal.
#32
I don't think anyone trying to trade a 4-month old car for a more expensive version of the same model is in a good bargaining position. It looks like a combination of desperation and impulsiveness, which they can see.
Just take a deep breath, walk (maybe run) away, and see if they even try to contact you again.
Just take a deep breath, walk (maybe run) away, and see if they even try to contact you again.
#33
thank you all for the invaluable advice and rationale. it's so reassuring to know that I'm a member of such a knowledgable community who responded so quickly to my concerns. I think I am not going to pull the trigger yet.
as all of us do, I work very hard for my money. and a 0-60 time of 1 second more is hard to throw away so much money for. I think I will shut up and wait. maybe will go for the 2017 R when it comes out later this year. my score and savings will be better by then as well. and hopefully negative equity will be less?
thanks again. you guys really really knocked some much needed sense into me.
as all of us do, I work very hard for my money. and a 0-60 time of 1 second more is hard to throw away so much money for. I think I will shut up and wait. maybe will go for the 2017 R when it comes out later this year. my score and savings will be better by then as well. and hopefully negative equity will be less?
thanks again. you guys really really knocked some much needed sense into me.
#34
I think you're wise to wait. Just because you can afford the payment, doesn't mean you can afford the car. Enjoy the car you have now, pay it down and wait for the next big change in the F-Type lineup. Long term you want to spend your car budget on cars, not on interest that goes to banks.
#35
thank you all for the invaluable advice and rationale. it's so reassuring to know that I'm a member of such a knowledgable community who responded so quickly to my concerns. I think I am not going to pull the trigger yet.
as all of us do, I work very hard for my money. and a 0-60 time of 1 second more is hard to throw away so much money for. I think I will shut up and wait. maybe will go for the 2017 R when it comes out later this year. my score and savings will be better by then as well. and hopefully negative equity will be less?
thanks again. you guys really really knocked some much needed sense into me.
as all of us do, I work very hard for my money. and a 0-60 time of 1 second more is hard to throw away so much money for. I think I will shut up and wait. maybe will go for the 2017 R when it comes out later this year. my score and savings will be better by then as well. and hopefully negative equity will be less?
thanks again. you guys really really knocked some much needed sense into me.
#36
#38
Also agree that you made a great call for many of the reasons shared with you, and an equally good call on taking proactive steps to bolster your creditworthiness for whatever financial path you might take down the road.
#39
Diablo: this is the key question that only YOU can answer...
New cars are not an investment. From a wealth preservation perspective, you are doubling down on a bad investment...absorbing a lot of negative equity on one new car into the financing on another new car and at a relatively high interest rate.
This is not a good business deal (and that's due to the circumstances, not the dealer; frankly, I applaud the dealer for trying to find a way). This is an emotional deal because you want this badly. If you can afford "the price," then you're free to do what you want..but there's no way to lay "the numbers" and call it a good deal. IMHO
New cars are not an investment. From a wealth preservation perspective, you are doubling down on a bad investment...absorbing a lot of negative equity on one new car into the financing on another new car and at a relatively high interest rate.
This is not a good business deal (and that's due to the circumstances, not the dealer; frankly, I applaud the dealer for trying to find a way). This is an emotional deal because you want this badly. If you can afford "the price," then you're free to do what you want..but there's no way to lay "the numbers" and call it a good deal. IMHO
#40
Diablo: this is the key question that only YOU can answer...
New cars are not an investment. From a wealth preservation perspective, you are doubling down on a bad investment...absorbing a lot of negative equity on one new car into the financing on another new car and at a relatively high interest rate.
This is not a good business deal (and that's due to the circumstances, not the dealer; frankly, I applaud the dealer for trying to find a way). This is an emotional deal because you want this badly. If you can afford "the price," then you're free to do what you want..but there's no way to lay "the numbers" and call it a good deal. IMHO
New cars are not an investment. From a wealth preservation perspective, you are doubling down on a bad investment...absorbing a lot of negative equity on one new car into the financing on another new car and at a relatively high interest rate.
This is not a good business deal (and that's due to the circumstances, not the dealer; frankly, I applaud the dealer for trying to find a way). This is an emotional deal because you want this badly. If you can afford "the price," then you're free to do what you want..but there's no way to lay "the numbers" and call it a good deal. IMHO